I'm a bit of a newbie here trying to figure out where I should be placing my money. Everything I have read on MMM (and lots of other places) suggests that index funds are the way to go, and I was all set to buy the TD waterhouse e-series index funds. HOWEVER, after reading this post:
http://www.mrmoneymustache.com/2011/06/09/how-to-tell-when-the-stock-market-is-on-sale/ I calculated the p/e ratio and it seems like a poor time to buy.
I have $40,000 invested in an REIT that I could move over to an index fund, and I have 35,000 in a TFSA that is actually just in cash right now, that I haven't done anything with. No debts or mortgage (we rent, wayyy cheaper where we are).
It seems like a crazy time to invest it all... does anyone have any strategies for this? one day (3-5 years) we would like to afford a house, so we can't put ALL of it into an index fund in case of a crash. we could wait it out in bonds? but that also seems crazy.
can someone please offer some strategies for either thinking about how long to wait (until the p/e ratio goes down?), or just going for it? or something else? thank you.